The factors affecting customers satisfaction in VNPost corporation

This research reviewed main factors, including service quality, pricing and payment, distribution channel, and diversifing services, from which affected customers’ satisfaction in VNP th

Advisor’s assessment

Advisor’s signature

ACKNOWLEDGEMENT

First of all, I wish to express my most sincere gratitude and appreciation to

Dr Bui Phi Hung for his initial orientation, valuable guidance, patience and encouragement throughout the development of this project

I would also like to send my greatly appreciation to staffs of VNPost Express Joint Stock Company (VPC), who help me conducting the delivery and collection questionnaires by hand in shortest time as they could

Third, I would like to thank all lecturers who transmitted the uncountable fund and invaluable of knowledge via all modules of MBA program designed by Open University Malaysia as well as great supports of HUTECH’s admin team I could not fulfil this MBA program without them

Finally, I heartily thank to my family for their great supports and on-going encouragements I could not complete this research project without them

ABSTRACT

Service quality has become one of the top priorities in business nowadays because it remains customer satisfaction and loyalty, growth and profitability Factors affecting customers’ satisfaction are extremely important for businesses in finding way to fulfill satisfaction to customers thereby gaining success in sales Customer’s satisfaction appears only when the company meets the expectations and needs of customers

This research reviewed main factors, including service quality, pricing and payment, distribution channel, and diversifing services, from which affected customers’ satisfaction in VNP through 150 delivery and collection of questionnaires Most of respondents, who are VNP’s customers, are companies Data collected were analyzed using SPSS 22 for Window i.e Cronbach’ alpha coefficients, factor analysis, and multiple linear regression analysis The result indicates that service quality, pricing and distribution channel are good predictors of customers satisfaction, in which distribution channel is the most important contribution, while service diversification does not meet the recommended standards of analysis

However, all these factors only meet customers’ satisfaction in medium level Managers should think over to improve service quality, then lead to satisfy customers in higher level in case VNP want to survise in today dynamic market

TABLE OF CONTENT

CHAPTER 1 - Introduction 1

1.1 Company brief introduction 1

1.2 Research problem statement 1

1.3 Purpose of the research 2

1.4 Scope of the research 3

1.5 Significance of research 3

1.6 Limitation of the research 3

CHAPTER 2 – Literature review 5

2.1 Definition of construct – The attributes of ECS 5

2.2 Factors influencing on customers’ satisfaction 6

2.2.1 Customers’ satisfaction 6

2.2.2 Customers’ satisfaction and its antecedents 7

2.2.2.1 The relationship between service quality and customers’ satisfaction 7 2.2.2.2 The relationship between price and payment and customers’ satisfaction 9

2.2.2.3 The relationship between distribution channel and customers’ satisfaction 10

2.2.2.4 The relationship between service diversification and customers’ satisfaction 11

2.3 How to measure customers’ satisfaction 12

CHAPTER 3 – Research methodology 15

3.1 Data collection 15

3.2 Research method 16

3.3 Data analysis 17

CHAPTER 4 – Research finding and analysis 18

4.1 Information of customers 18

4.2 Reliability test 19

4.3 Factor analysis 25

4.3.1 Factor analysis of Service Quality 26

4.3.2 Factor analysis of Price and Payment 27

4.3.3 Factor analysis of Distribution Channel 28

4.3.4 Factor analysis of Service Diversification 29

4.4 Result of study 31

4.4.1 Relationship between customers’ satisfaction and its antecedents 32

4.4.2 Strongest factor impacting on customers’ satisfaction 34

CHAPTER 5 – Discussion and recommendations 36

5.1 Discussion 36

5.2 Recommendations 37

5.3 Limitations of study and further research 40

REFERENCES 42

APPENDIX 1: Questionnaire 46

APPENDIX 2: Presentation of business research 50

LIST OF TABLES

TABLE 4.1 – Type of company 18

TABLE 4.2 – Size of company 19

TABLE 4.3 – Results of reliability of service quality 20

TABLE 4.4 – Results of reliability test of pricing and payment 21

TABLE 4.5 – Results of reliability test of distribution channel 22

TABLE 4.6 – Reliability test of service diversification 23

TABLE 4.7 – The structure of hypotheses after reliability test 25

TABLE 4.8 – Final component matrix of factor analysis of service quality 26

TABLE 4.9 – Final component matrix of factor analysis of price and payment 27

TABLE 4.10 – Component matrix of factor analysis of distribution channel 28

TABLE 4.11 – Component matrix of factor analysis of service diversification 29

TABLE 4.12 – Summary of factor analysis 30

TABLE 4.13 – Model summary of customers’ satisfaction 32

TABLE 4.14 – Coefficients of customers’ satisfaction (CS) 32

LIST OF FIGURES

FIGURE 1 – Measuring model for customers’ satisfaction 12 FIGURE 2 – Theoretical framework of this research 13 FIGURE 3 – Distribution of questionaire items 16

ABBREVIATION

BSO: Breadth of service offering

CCI: Call center for handling of interrogation CS: Customers’ satisfaction

DC: Distribution channel

DHL: DHL Express Corporation

ECS: Express courier service

EMS: Express Mail Service

FedEx: Federal Express Corporation

IIA: Investment in asset

INC: International and national coverage

IOS: Integration of service

OTD: On-time delivery

PAQ: Price appropriating with quality

PBE: Pricing attaching to the brand and experience PP: Price and Payment

SD: Service diversification

SSS: Safety and security of shipment

SQ: Service quality

TNT: TNT Express Corporation

ROS: Reliability of service

UPS: United Parcel Service

VPC: Vietnam Post Corporation

CHAPTER 1 – INTRODUCTION

1.1 Company prief introduction

Vietnam Post Corporation (VPC) was established on the basis of implementing the pilot Project on establishing Vietnam Posts and Telecommunications Group (VNPT) in 2005 VPC has 67 dependent units (including 63 provincial and municipal posts, National Newspapers Distribution Company, Datapost Company, VNPost Logistics Company, Training Centre); 02 one-member limited liability companies with 100% of the charter capital held by the VPC; 03 joint-stock companies with more than 50% of charter capital held by VPC and 08 associated companies Currently, Vietnam Post is a member of the Universal Postal Union (UPU) and has close cooperation relations with almost all countries in the world They are striving to become a leading enterprise to provide post and delivery services, Finance and Retailing services in Vietnam and to be the best choice for customers

1.2 Research problem statement

Express courier service (ECS) is indispensable in business activities all over the world It helps companies cuting down operating and inventory costs, and moreover, ECS plays an important role in affecting the capability of most of companies’ operations such as sales, production, customer support functions, logistics and storages

Vietnam’s express industry has grown significantly in recent years thanks to the opening and booming of Vietnam economy The growth rate of courier express market in Vietnam would stay stabilize at 25%-30% in upcoming years (D&T Express, 2011) Moreover, Vietnam became the official member of World Trade Organization (WTO) since 2007; thereby leading to growth with the rapid pace of

international business cooperation and the continuous increase of import-export products of the country, which will create a great business opportunities for the luxury industry Vietnam Expressway in the near future (Nguyen and Nguyen, 2011)

Currently, there are about 75 express courier companies operating in Vietnam, including international corporations such as DHL, FedEx, UPS and TNT accounted for 80% market share, while the share of EMS operated by VPC is only 8% (D & T Express, 2014) Nicolaus analysts (2008) described the market as an exclusive show orderly group of "multinational" (Parcel Scene one "order oligopoly", 2008) It is difficult for VPC and small businesses to compete with the

"multinational" in this industry due to the limitations on the quality of service and value added services So, by indentifying factors affecting customer satisfaction in courier services in HCM City, the study may help VPC improving the quality of their services and improve the competitive position their competition in Vietnam express market

1.3 Purpose of the research

The purpose of this study was to explore the factors related to customer satisfaction in the courier industry in HCMC Therefore, the topic research aims as follows:

• To have an overview of the attributes of Express Courier Service

• Examine the relationship between customer satisfaction and its precursor in Express Mail Service

• To identify the factors that most influence on customer satisfaction in the Express Mail Service

• To assess the level of customer satisfaction in the Express Mail Service

1.4 Scope of the research

This study was conducted on 150 customers of VPC, in which the majority are companies related to international business All 150 copies of questionnaires were manually moved to 150 respondents courier staff collected them in a week after the birth, of course, there are prepared SPSS 22 for windows (or PASW) was used to analyze the data collected from the survey Object sampling is a loyal customer of VPC who can understand some of the properties of the courier service, and most of them are organizations and business companies

1.5 Significane of research

In the current context of intense competition, customer satisfaction is an important factor for businesses to succeed Customer satisfaction has become a particularly important issue in the competitive environment for marketing as well as service companies, including ECS, because of the competitive advantage and affecting customers’ loyalty

With important contributions to the success of CS and growth for VPC, there

is a need to address and evaluate the affected factors on customer satisfaction; which proposed a number of ideas in an effort to help improve the quality VPC their services and can meet the customer at a higher level This also allows VPC to overcome the biggest current issues and challenges - quality of service - facing in Vietnam’s express service market in order to survive and growing in today's rapidly fluctuating market

1.6 Limitation of the research

Like other scientific studies, there is some inevitable limitations faced by researchers:

Firstly, the data collection phase, authors can only proceed to questions instead of the interview, in which there is no sufficient evidence for large construction value (Yin, 2003)

Second, due to geographical constraints, time and physical ability, the survey questionnaire was not considered prudent before conducting the survey This might

be a bit subjective in proposing the question

Third, the use of sampling techniques no probability not generalize the overall results (Bryman and Bell, 2007), so that the evidence can not be formed into

a chain and information reviewed by the agencies in Therefore, in this study, depth exploration of the issues are not completely satisfied

in-CHAPTER 2 – LITERATURE REVIEW

Literatures and survey papers on global express delivery industry are rather limited and difficult to find in academic journals (Subrata et al, 2010) In this chapter, researcher will go through theories related to the objectives of the thereby propose hypothesis to capture and fulfill the purpose of the research

2.1 Definition of construct – the attributes of ECS

According to Oxford Economics (2009), "the core business of the express industry is delivering, door-to-door transport and value-added next day delivery shipments or certain time, including documents, parcels and freight " Subrata et al (2010) suggested that ECS handles both documents (business communications, procurement, invoices, letters, brochures, manuals, annual reports, witness only, etc.) and non-text (spare parts, electronic items, apparels, samples, merchandise, ATM, etc.)

In the higher levels, ECS is a rapid transit service products that are value products such as pharmaceuticals, electronics and medical equipment, valuable goods such as news writer normative law, journalism, and perishable goods (Ohnell and Woxenius, 2003)

Along with transportation, ECS providing value added services such as to-door, time of pick up convenient and offers, guaranteed delivery, reliability of service, safety and security of shipments, the tracking system on time visibility of goods during shipping, proof of delivery, and the call center to handle the interrogations

To meet the demand for business efficiency, ECS take advantage of overnight shipping known as "downtime" to hand over the shipment from the shipper to the working day to deliver to recipients on the first day later (next day delivery) By using all the different modes of transportation such as vans, trucks,

trains, cargo planes and passenger planes to meet the urgent requirements of the enterprise; ECS has recorded great achievements and contributed an important part

of the global economy (Oxford Economics, 2009)

In many countries, EMS is provided by the postal department EMS service quality can not be compared with MNCs such as FedEx, UPS, DHL and TNT which

is the world's leading companies in the courier industry, because EMS is not able to provide adequate services more value as mentioned earlier Therefore, MNCs in the courier industry usually accounts for the biggest piece of the market share

2.2 Factors influencin on customers’ satisfaction

2.2.1 Customer’ satisfaction

Today CS is considered the main factors that brought success for any business Customer satisfaction can understand a definition of Kathleen (2005), "A customer's perception that their needs, desires, expectations, or the desire for products and services has is complete "

Therefore, if customers are satisfied with the products / services that they can repeat their purchase of goods, and also have a good impression about the image of the goods In contrast, the dissatisfaction of customers may result in a negative image of the goods, and as a result that the goods can not be consumed Kotler (2004), who is regarded as a father of modern marketing theory asserts that the interests of customer satisfaction can lead to spread word-of-mouth actively reduces the cost of the program promotions to attract new customers Indeed, CS is seen as an important source of benefits such as customer retention and reputation of the organization, reliability of services can lead more profit Once you have achieved higher profits, it is very easy for companies to conduct successful ECS value added in the width of the ESC as support services, expanding the base of services, quality of human resources force, investments in assets and information systems, and integration of services and so on and in fact, the increase in value is

indispensable in ECS, Sheth (2001) concluded that "CS can provide you with important competitive advantage, which can directly lead to increased profit profit and growth."

CS can generally be regarded as a tool to achieve the business purpose as well as gain a source of sustainable competitive advantage (Renart, 2001)

2.2.2 Customers’ satisfaction and its antecedents

Ladhari (2008) shows that customer satisfaction is affected by a series of psychological signal and the perceived quality of services such as product / service quality, pricing and billing, distribution channels distribution and diversification of

services

2.2.2.1 The relationship between service quality and customers’ satisfaction

Zeithaml and Bitner (2003) asserts that the quality of service is seen as a positive attitude of customers or negative regarding the circulation of a service Today, the quality of service is accepted as a multidimensional concept The diversity of quality of service models are developed and used in the literature as the scale established by GLOVAL Sanchez et al (2006), cognitive development SQ sample by Grönroos (1984), and Donthu SITEQUAL Yoo (2001), and BANKZOT

by Nadiri et al proposed, (2009)

Although some models are being used in various industries, servqual model was developed and refined by then Parasuraman et al (1991) received the most recognition And it was regarded as a driving force for research activities in the relationship dimension of service (Srinivas et al, 1999) servqual scale consists of the following measurements

• Reliability is the ability to provide the services as promised Businesses must provide the appropriate quality of service and commitment to advertising

• The response is likely to meet the legal requirements of the customer, and is willing to provide services quickly

• Ensure courteous attitude, professional style and knowledge of the workers; especially the ability to create peace of mind, our customers trust

• Empathy is attentive service, special attention to the customer, and the ability

to understand the unique needs of our customers

• Tangible is the facilities, equipment, uniforms, slogans, the arrival of the employee, and images

He and Li (2011) stated that "One of the most important investments in the services sector is to invest in the quality of service", adding that the quality of service is not only an important element for customer satisfaction but also plays a very important role in building the brand name for the organization Leverin and Liljander (2006) concluded that the structure of the quality of services and CS are inseparable, and they influence each other through service features Therefore based

on the features of the ECS is described by Subrata et al (2010), the factors that may affect the quality of EMS service will be considered as follows

• On-time pick-up: the period has been scheduled before the public and customers The delay time pick-up will adversely affect the psychological and customer satisfaction

• On-time delivery: as one of the measurements of service quality measuring mass ECS services provided to customers on time and in full

• Reliability of services: related to the business aspects of the service industry which reflects the quality of services in the consumption phase (Galetzka et al, 2006)

• Safety and security of shipments: is the convenience offered by ECS to ensure that shipments are not lost and damaged during shipping

• Call center: the customer care center to receive information, requested by phone, e-mail, web, fax, etc to resolve customer inquiries

• Ready to serve: as one of the elements to assess the quality of services in the consumption

• Reliable courier: by characteristic of ECS, courier staff is seen as the face of the service, and dealing directly with customers daily Thus, the reliability of the staff courier will strongly influence the image of the service

• Body courier: a friendly staff will create a good relationship with the client, and then led to CS

From the discussion above, whether the quality of service in the CS affect EMS, the hypothesis (H1) is proposed:

H1: Service quality has a significant relationship with customer satisfaction in the Express Mail Service

2.2.2.2 The relationship between the Price and payment and customers’ satisfaction

Kotler and Armstrong (2010), the valuation is the amount paid for the product or service, or the sum of the exchange value or the consumer to use the product or service rather than the interests of customers According to Hanif et al (2010), the price is a very important issue that could lead towards satisfaction, and support paid to develop CS Martin-Consuegra et al (2007) assert that the customer's decision to accept a specific price is directly related to the level of satisfaction

Therefore, price and payment needs to be placed in the appropriate level, acceptable and justified if a company wants to survive in the market Herrmann et al (2007) concluded that CS is directly influenced by the factors of price and payment, while it indirectly through the perception of price fairness Moreover; Iglesias and Guillén (2004) asserts that price and payment, along with other factors such as quality of service, is the predecessor of CS

Indeed, EMS is not different with other services, and the price of this service

is usually at senior level and is a sensitive issue This means that the price and payment plays a vital role in ECS industry Prices may be discounted 5% off to 55% depending on the amount of use the ESC, so a policy of flexible price will influence

strongly to CS in particular ECS Some attributes of pricing and payment are summarized below

• Flexible price by volume in the use of EMS service

• Price appropriate with quality

• Price attaching with the brand and level of customer experience

• Term of late payment

• Third-party payment

• Online payment

Based on the discussion above, the second hypothesis (H2) was built:

H2: Price and payment have significant relationships with customers’ satisfaction

in the Express Mail Service

2.2.2.3 The relationship between distribution channel and customers’ satisfaction

In ECS industry, distribution channel plays a very important role to make a difference and great success in providing services (Learning Objectives, 2012) Each courier employee, each pick-up truck and each store is the physical factor, and also the image and the face of the ECS The necessity of this distribution to narrow the gap between the production of the products / services and consumption in place,

in time, quantity, and quality of service, especially in the ECS ( Pranulis et al, 2008) Moreover, Neslin and Shankar (2009) confirmed that CS is an important issue for the management of distribution channels

It is not simply that the distribution channels of FedEx, UPS, DHL and TNT covering more than 200 countries and territories around the world (FedEx profile, 2015; UPS history, 2015; DHL profile, 2015; TNT profile, 2015) Such large distribution channels to help them expand their business in new markets and meet the CS, and simultaneously achieve great achievements today

Banyte et al (2011) concluded that the distribution channel is an indispensable element in the operations of the organization to meet the CS From

the features described by Subrata et al (2010), a number of factors under the distribution channel can affect CS as below

• Investments in property and infrastructure of distribution channels

• Investments in information systems and technology

• International and national insurance

• The width of the service provided

• Expanding the service facility

• Integration of services

Based on the discussion above, the third hypothesis (H3) is proposed:

H3: distribution channel has a significant relationship with customer satisfaction in the Express Mail Service.

2.2.2.4 The relationship between service diversification and customers’ satisfaction

In ECS industry, diversification allows the company to leverage their expertise and special skills to enhance and develop the capacity to achieve both profitability and meet CS The noteworthy point, as ECS is considered a type of professional services, diversified services that enable companies to improve the quality of their services for CS services door-to-door, the combination of services, consolidation of shipments to shorten the time of conventional and cost savings to customers, requiring specialized skills and experience of the staff responsible for the organization

Some of EMS services could affect the CS that are listed as follows:

• The service door-to-door: pick-up and delivery shipments or documents at the client's home

• Door to Airport / Port services: pick-up and delivery at the customer at the airport

or port

• Airport / port to service / gateway airport: pickup and delivery shipments at the airport or port

• Airport / port to door service: pick-up at the airport or port and delivery at the customer's home

With the discussion above, Wednesday hypothesis (H4) is recommended:

H4: diversification of services has a significant relationship with customer satisfaction in the Express Mail Service.

2.3 How to measure customers’ satisfaction

By tradition, the extent of customers’ satisfaction is measured by service quality, price and payment, and buying process (Kumbhar, 2011) However, Smith (2007) shows that CS relates to three factors of psychological when evaluating customer experience about the services and/ or products, including “cognitive (or evaluation), affective (emotional-feeling and/ or like-dislike) and behavioral (current and/ or future actions)”, as described in Figure 1 below:

Figure 1 - Measuring model fo customers’ satisfaction (Source: Smith, 2007)

As shown in Figure 1, Smith (2007) stated that "customer satisfaction is affected by the perceived quality of the product attributes and services, features and benefits, and was moderated by period expectations of customers about the products

or services Each structure can affect customer satisfaction have been identified by researchers "

Most research on marketing issues as well for similar results regarding the relationship between the CS and the quality of service, price, purchase process, and others etc., and this relationship is a invisible connections (and Naser Jamal, 2003) Therefore, based on the theories mentioned and the features of the courier service; built theoretical framework shown in Figure 2 to conduct the survey for this study

It consists of four independent variables (or hypothesis) and a dependent variable (a concept of CS), which include (1) Quality of service, (2) Price and payment, (3) distribution channels coordination, and (4) various services

Figure 2 - Theoretical framework of this research

H1: Service quality has a significant relationship with customer satisfaction in the

Express Mail Service

H2: Price and payment have significant relationships with customers’ satisfaction in

the Express Mail Service

H3: distribution channel has a significant relationship with customer satisfaction in

the Express Mail Service

H4: diversification of services has a significant relationship with customer

satisfaction in the Express Mail Service

CHAPTER 3 – RESEARCH METHODOLOGY

“Methodology is a form of standardization or framework that allows things to be compared on a like-for-like basis, and allows findings to be replicated so as to validate them” (UKdissertation, 2012)

3.1 Data collection

Data collection is an important step of any research, so it must be well planned Srivastava and Rego (2011) determined that the data is the direct collection of the researchers Specifically, the question is used in this study with the type of delivery and collection of questionnaires which means that the question will

be sent directly by hand for each application and then collected (Saunders et al ,

2009, p 362)

There are two types of questions that are self-management and table management interview questions In this study, self-management questions to be used with virtually close the question in the way of delivery and collection questionnaire (Saunders et al, 2009)

The questions are divided into three sections of 32 questions in detail in Figure 3:

- Section A: Company Information includes 3 questions

- Section B: factors affecting satisfaction consists of 28 questions

- Section C : customer satisfaction Most of the questions are described by 5 points Linkert scale (Likert, 1932) of disagree, disagree, neutral, agree and totally agree

Figure 3 - Distribution of questionnaire items

3.2 Research method

The induction and deduction has existed for many years, and has been developed by the influence of various movements and theories (Vogel et al, 2011) inductive method has the ability to set theory from the findings of the researchers through specific events (Bryman and Bell, 2007) Conversely, deductive method is

used to test the theory, then the inductive method associated with the construction

of the theory (Saunders et al, 2009) The deductive method is an approach of this study

Alwood (2012) says that "the distinction between qualitative research and quantitative as abstract" and unclear, therefore, the risk of its popularity can lead to unfortunate results In general, qualitative research and quantitative research used in this application is an alternative, and they support each other

This qualitative approach will be applied in this study through closed questions in the questionnaire to obtain information for the purpose of it to explain how these factors affect CS in the current context of EMS service

3.3 Data analysis

The researchers used non-probabilistic techniques to identify the most important characteristics of the service delivery with 150 questions and collected manually Data collected were analyzed using SPSS 22 software

SPSS (Statistical Package for the Social Sciences) software is a computer application that allows users or researchers to analyze data from the survey questions, and other sources (FlinderUniversity, 2009) Specifically, alpha Bronbach be used to check the reliability, factor analysis was used to remove the variables do not correspond, more regression is a tool to test the hypothesis (Dale, 2003)

CHAPTER 4 – RESEARCH FINDINGS AND ANALYSIS

4.1 Information of customers (Companies)

Type of customer (or company) Frequency Percent

(%)

Valid Percent (%)

Cumulative Percent (%)

Valid Vietnamese

company

33 22.0 22.0 22.0

Foreign company 66 44.0 44.0 66.0 Bank 9 6.0 6.0 72.0 Representative

office

18 12.0 12.0 84.0

Law office 9 6.0 6.0 90.0 Shipping agency 7 4.7 4.7 94.7 Consulate 6 4.0 4.0 98.7 Others 2 1.3 1.3 100.0 Total 150 100.0 100.0

Table 4.1 - Type of Company

Table 4.1 shows that group of foreign company account for the largest

proportion of VPC’s customer structure (44.0%), the second one is Vietnamese

company with 22.0%, representative offices are ranked third with 12.0% Total of them account for 78.0% of customer structure which means that most of VPC’s customers are companies relating to foreign elements, and their business activities are in international scale This result show that volume and revenue of VPC are strongly depending on companies which relate to international activities

Size of customer (or company) Frequency Percent

(%)

Valid Percent (%)

Cumulative Percent (%)

Valid 1 -> 10 staffs 12 8.0 8.0 8.0

11 -> 30 staffs 55 36.7 36.7 44.7

31 -> 100 staffs 66 44.0 44.0 88.7 Over 100 staffs 17 11.3 11.3 100.0 Total 150 100.0 100.0

Table 4.2 - Size of Company

Table 4.2 shows that most of Vietnam companies are SMEs The size of the

company with the scale below 100 employees accounted for 88.7% Representative offices accounted for 12.7% within this study This means that although Vietnam is considered as an economic development and potential, but it’s not a big market to attract FDI

4.2 Reliability test

According Sekaran (2006), check the reliability measure is to ensure the integrity and stability of the variables or position, whether the items related to each dimension is internally consistent

According to George and Mallery (2003), from 0.7 upwards Cronbach Alpha showed the reliable and good turn for further research However, some researchers say that at 0.60 Cronbach alpha is acceptable (Gerrard et al, 2006; kenova and Jonasson, 2006; Malhotra et al, 2005), and also the coefficient of 'Corrected item-total relative agency "must be greater than 0.30, or 'Alpha if item deleted' should not large 'alpha reliability'

In fact, industrial ECS is not really popular, and most of those surveyed do not deeply understand this industry, so the test criteria are as follows

• alpha reliability coefficient > 0.60

• The adjustment item-total correlations > 0.30

• 'Alpha if item deleted' should not be greater than 'reliability coefficient alpha'

Cronbach’s alpha Reliability level

0.00 ≤ < 0.02 Very low

0.20 ≤ < 0.40 Low 0.40 ≤ < 0.60 Sufficient 0,60 ≤ <0.80 High 0.80 ≤ ≤ 1.00 Very high

Source: Malhotra et al (2005)

The variables which satisfy the above standards are used for next analysis In contrast the variables which do not satisfy the above standards are eliminated

Reliability Test of Service quality (H1)

Table 4.3 - Results of reliability of Service quality

correlation

Deleted alpha OTP On-time pick up 3181 .7753

OTD On-time delivery 6041 7264

ROS Reliability of service 6147 7245

SSS Safety and security of

SQ Service quality 6768 7131

Alpha Reliability Coefficients = 0.7715

Cronbach’s alpha coefficient of ‘Service quality’ is 0.7715, and most of

corrected item-total correlations are over 0.300 It means that the present data is suitable for factor analysis, ensure the required reliability

However, coefficients of ‘alpha if item deleted’ of ‘On-time pick up’ and

‘Willingness to serve’ are 0.7753 and 0.7728 which are greater than 0.7715, and the corrected item total correlations are lower than 0.300 That means ‘On-time

pick up’ and ‘Willingness to serve’ are not significant reliability and validity for

service quality in VPC, therefore, these variables are eliminated

The variables of 'On-Time received' no correlation with other variables, and not be appreciated by customers that is a pity because its delay will prolong the waiting customers direct influence on CS It suggests that the answer is incorrect or the questions mentioned in the question are unclear or difficult to understand Besides' ready to serve 'no longer meets the test, it means that the responsibilities of

a staff of EMS' is incomplete, and it is a common disease of the state-owned enterprises in Vietnam that needs to be changed and thorough treatment

Reliability Test of Price and Payment (H2)

Table 4.4 - Results of Reliability Test of Pricing and payment

correlation

Deleted alpha FPS Flexible pricing by volume of using service 0.3775 0.5967

PAQ Pricing appropriating with quality 0.3749 0.5982

PBE Pricing attaching to the brand and experience 0.4041 0.5890

TPP Third-party payment 0.1448 0.6757